Shanda Games Limited (Nasdaq: GAME, "Shanda Games" or the "Company"), a leading online game developer, operator and publisher in China, announced that its board of directors declared a special one-time cash dividend of US$0.51 per Class A or Class B ordinary share, or US$1.02 per American Depositary Share ("ADS").
Record holders of the Company's Class A and Class B ordinary shares at the close of business on December 20, 2011
(the "Record Date") will be entitled to receive the special dividend.
Holders of the Company's ADSs, each representing two Class A ordinary
shares, as of the Record Date will be entitled to the special dividend.
JPMorgan Chase & Co., depositary bank for Shanda Games' ADR program, expects to pay out dividends to ADS holders on or at around January 20, 2012.
The actual dividend distribution date may change, depending on whether
the Company is able to obtain the relevant regulatory approvals in China
in a timely
manner. The Company plans to issue another press release informing the
market should there be any change to the scheduled dividend distribution
date. The total amount of cash to be distributed for the special
dividend is expected to be approximately US$285 million.
"As our current cash position exceeds the Company's short-term needs
and we continue to generate strong free cash flow from operations, we
are happy to announce this special dividend in an effort to return value
to shareholders," said Mr. Alan Tan, Chairman and CEO of Shanda Games.
"We intend to continue to make investments in our businesses and
maintain our position as a leading innovator in the industry. We are
confident in our long-term growth potential and ongoing ability to
increase shareholder value."
As of September 30, 2011, the Company had RMB3,710.4 million (US$583.9 million) in cash and cash equivalents, short-term investments, restricted cash and time deposits, net of loans. The Company generated RMB1,745.3 million (US$274.6 million) in cash flow from operations on revenues of RMB4,504.7 million (US$708.9 million) in fiscal year 2010, the most recent year for which financial results have been reported.
Currency Convenience Translation
The United States
dollar (US$) amounts disclosed in this press release are presented
solely for the convenience of the reader. The conversion of Renminbi
(RMB) into U.S. dollars is based on RMB6.3549 to US$1.00 as published by the People's Bank of China on September 30, 2011.
The Company makes no representation that the Renminbi or US dollar
amounts referred to in this release could have been, or could be,
converted into US dollars at such rate or at all. The percentages
stated are calculated based on the RMB amounts.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements in this
announcement that are not historical facts, including but not limited to
statements regarding the long-term growth of the Company, represent
only the Company's current expectations, assumptions, estimates and
projections and are forward-looking statements. These forward-looking
statements involve various risks and uncertainties. Important risks and
uncertainties that could cause the Company's actual results to be
materially different from expectations include but are not limited to
the risk that the Company fails to deliver long-term growth, as well as
the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission,
including the Company's annual
report on form 20-F. The Company does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
About Shanda Games
Shanda Games Limited (Nasdaq: GAME) is a leading online game developer, operator and publisher in China. Shanda Games
offers a diversified game portfolio, which includes some of the most
popular massively multiplayer online role-playing games (MMORPGs) and
advanced casual games in China, targeting a large and diverse community of users. Shanda Games
manages and operates online games that are developed in-house,
co-developed with world-leading game developers, acquired through
investments or
licensed from third parties. For more information about Shanda, please
visit http://www.shandagames.com.